Banks will be seeing a surge of borrowers seeking commercial property loans following the Fed’s decision to stay the course on its bond-buying program, according to a Bloomberg report.
Rates reached a five-week low when the Federal Reserve announced last week that it would continue the $85bn-per-month stimulus program. Bloomberg, citing a Sept. 20 JPMorgan Chase & Co. analysis, reported Monday that the Fed’s decision set the stage for an increase in commercial mortgage applications, according to the analysis.
“Both refinance volume and transaction volume will pick up as borrowers seek to lock in lower rates ahead of the eventual tapering decision,” the JPMorgan analysts wrote. The lender is predicting about $77bn in sales this year, according to Bloomberg.